Rehab property w/large amount of mold?

Question

Experienced fix n flippers, do you consider rehab properties w/large amounts of mold or just stay away? If you consider them, how have you handled the issue?

Will Mace · Answer

@Stacy Davis I'll offer my .02 based on my experience of owning an environmental remediation company:

1) Mold is not the main concern. As @Uriah D. stated, the moisture source is the primary concern. If the source can reasonably (read: expense/time) be fixed the mold can be easily mitigated ("easy" does not necessarily mean cheap). Factors determining mitigation are types of construction materials the mod has impacted. Generally mitigation/abatement involves some or all of the following: drywall removal, abrasive sanding, wet wiping with biocide, HEPA air scrubbing, structural drying before repairs performed if moisture remains, etc.

2) I would check with your State R/E disclosure laws. Assuming you would be flipping, does the state you are flipping in require you to disclose previous water damage and/or mold impaction? If so and you are planning on selling I would make sure to use an accredited abatement company for removal AND have a "Post Remediation Inspection" following abatement. Essentially a third-party consultant (not part of the abatement company) that assesses/inspects to verify abatement was performed thoroughly and provides you a written report, which can then be provided to a buyer if needed. This should eliminate any concern a buyer would have based on the work performed.

3) Since you say "large amounts of mold", I assume the property is being sold "As-is". If not & there's room for negotiation with the seller, get an estimate from a local "certified" abatement contractor & use the estimate to negotiate (don't forget to add in costs of fixing the source(s) and repairs after abatement).

I have found some great properties with "issues" that scare away other buyers.

Best of luck!

Uriah D. · Answer

@Stacy Davis

First order is to remove presence of water. Get the space air conditioned or heated so mold stops. Air scrubbers are a good idea for bad mood. We then will rip out anything deeper than surface and replace. Surface mold/mildew we treat with benefect(so?)

Mark Fries · Answer

@Stacy Davis

I love mold houses....tons of built in equity usually due to deep discount on the buy side

Michael Norris · Answer

I can't argue with the instant equity side of buying mold houses. That said as a person with a spouse who has ongoing illness from mold toxicity exposure from many years ago I'll just ask that you bring in professional mold remediation and EVEN THEN - know that you may still have mold issues in the future. Once mold gets it's foot in the door it can be very hard to get rid of.

It's easy to dismiss someone complaining about being sick from mold until you see someone you care about go through it. Diagnosis is difficult, treatment is very expensive, not fully covered by health insurance, and can take years.

Not disclosing the remediation to a potential buyer is morally wrong in my opinion and if that's not good enough for someone to do the right thing consider not disclosing the remediation opens you up to potential legal issues in the future for not disclosing a known issue.

If someone does not have a history of mold illness they should be just fine in a properly remediated house. Heck someone not predisposed to mold illness can be just fine in an UN-Remediated house. At least give them the option.

Sue Hough · Answer

Stacy,

As an investor of 21 years, I agree wholeheartedly with Mark, I love houses with mold because they are instant equity.

I would like to start out by stating the EPA does not have any protocol or licensure for the removal of mold in residential homes ( I am not aware of any states which require licensure). In addition, they do not offer a  standardized safe measurement for mold in residential homes. This is typically due to the fact mold growing in residential homes is the same species of organic mold which grows naturally outside. The “black” mold which can be very toxic to some people,  is mold which grows on certain chemicals which are not typically present in a residential home,  it does not refer to the color of mold.

As several of the other comments above, the most important thing you need to do before removing any mold is find the source of water and make sure that is elliminated. Mold cannot grow without water, convexly it will continue to grow as long as a there is water. Removing mold inside of the home is relatively easy and inexpensive. It does require some effort and a lot of scrubbing :)   There are many step-by-step videos available online to show you how to do this, but the basic premise is the following ;

1.  Remove all drywall, insulation, carpet  and all other removable items which are affected.  You want to expose all lumber.

2.   Run dehumidifiers for at least three-five days to reduce the moisture in the area.

3.   This is where you want to make sure the studs and joists are in good structural condition, which basically means the wood is not soft.  If you come across sections of lumber which are soft, you would have to replace them.

4.  Scrub,  using a wire scrub brush,  all of the affected areas with a cleaner specifically for removing mold. This can be as simple as 1c bleach per 1 gallon water.  You can also find additional cleaning products online.

5.  Run your dehumidifiers again for about three days.

6.   Paint the affected surfaces with an oil based primer such as Zizzners,  to help protect the surfaces from re-infestation.

I have never been a fan of hiring a mold remediation “expert“  due to the fact there is no licensure and anyone can call themselves an expert.  Plus they are a very expensive option. As you can see mold removal is not that complicated or expensive.  Having said that, sometimes it may be a good choice for you if you are flipping this house and you want  to divert some of the liability.   If you use an outside source read their contract thoroughly so you know what you were entering into. Most mold remediation experts do not guarantee their work once they leave as mold is a natural occurring organic growth.

Good luck to you and happy flipping!

Sue Hough

Rehab property w/large amount of mold?

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